Not sure how to make a retirement plan? Read on…
Latest News
“I took a break from Bay Street to co-write a musical”: Myron Genyk on his money values and getting financially cut off at 20 Jun 1st
Who is Myron Genyk? As the CEO and co-founder of Evermore Capital, a Canadian asset management company, he introduced target date exchange-traded funds (ETF) for those with retirement goals from 2025 to 2060. With over 15 years of Bay Street experience, Myron has worked at BlackRock Canada and Natio.... More »
Is semi-retirement stressful? You bet—here’s what to do about it Jul 27th
One of my semi-retirement philosophies is that reducing stress can sometimes be more important than maximizing revenue. Assuming you’re self-employed in semi-retirement, as I am, you may find yourself juggling multiple clients and conflicting demands on your limited time and energy.
The topic o.... More »
RRSP deadline: A procrastinator’s guide + MORE Feb 24th
The March 1 RRSP deadline is fast approaching. When it comes to last minute RRSP planning, however, nothing surprises Michael Berton anymore. The Vancouver-based CFP has seen people dump cash in their accounts at the last second or invest in something unusual because they were pressed for time. He.... More »
Can Canadian seniors collect government benefits while still working? + MORE May 26th
Q. This fall, I will celebrate my 65th birthday, and plan to reduce my work hours to three days a week, from my current full-time hours now. I also plan to begin collecting my Canada Pension Plan and Old Age Security benefits—but, at the same time, I want to avoid being taxed on my income if possi.... More »
Marriage or mortgage: Which is the better investment? Mar 30th
Weddings can be expensive, but so can many of the things that come after a wedding—like a home purchase, starting a family and saving for retirement. And so money is an important relationship issue even before a couple ties the knot.
Both weddings and home purchases can both cause people to thin.... More »
What it takes to retire at 45
– moneysense.ca
Q: I’m 27 years old with a relatively healthy income of around $125,000. I’m aiming to get on the early retirement track with any luck and retire around the age of 45.
I’ve been aggressively in the investing game for a few years now and have been putting money into my RRSP, which now has a balance of around $46,000 (25% fixed income and 75% equity). I realize that putting the majority of my savings into an RRSP is a bit counterintuitive given my early retirement ambitions, however, and am starting to think about placing a larger portion of my savings into a TFSA so I can withdraw from it before age 65.
I’m at odds here, as I appreciate the reduction on my income tax from contributing to my RRSP. Any wisdom or considerations here would be greatly appreciated!
– Konstantino
A: The financial independence, retire early (FIRE) movement seems contrary to what many older Canadians think about millennials. The thing I like most about personal finance is the emphasis on “personal” – personal decisions, personal goals, and personal planning…
I’ve been aggressively in the investing game for a few years now and have been putting money into my RRSP, which now has a balance of around $46,000 (25% fixed income and 75% equity). I realize that putting the majority of my savings into an RRSP is a bit counterintuitive given my early retirement ambitions, however, and am starting to think about placing a larger portion of my savings into a TFSA so I can withdraw from it before age 65.
I’m at odds here, as I appreciate the reduction on my income tax from contributing to my RRSP. Any wisdom or considerations here would be greatly appreciated!
– Konstantino
A: The financial independence, retire early (FIRE) movement seems contrary to what many older Canadians think about millennials. The thing I like most about personal finance is the emphasis on “personal” – personal decisions, personal goals, and personal planning…
Should I invest my money or buy a life insurance policy instead?
– moneysense.ca
Q: My wife and I are both 40 and have two kids—ages 5 and 7. We are considering buying a joint last-to-die life insurance policy that would cost a fixed $7,105 per year for ten years. That’s a total of $71,050 and the policy would pay $500,000 when the last of us dies. This is a proposition from our advisor after we have made our retirement plan. We have concluded that we have enough savings to retire at 55 with a very comfortable nest egg made up of TFSAs, RRSPs, and defined benefit pension plans, as well as money in non-registered investments.
We do not have any debts except a remaining mortgage of $95,734. We also have life insurance and disability insurance with our employer that would cover our needs if one of us were to die or could not work anymore. The goal of this joint last-to-die policy would be to transfer money tax- free in the future as all other needs are covered either by our savings or our employee benefits.
I am wondering if buying this policy is really a good move and if the cost of this product is reasonable? We can afford the cost without changing our lifestyle but our advisor is not independent so the policy would be sold by its institution and that’s what makes me wary…
We do not have any debts except a remaining mortgage of $95,734. We also have life insurance and disability insurance with our employer that would cover our needs if one of us were to die or could not work anymore. The goal of this joint last-to-die policy would be to transfer money tax- free in the future as all other needs are covered either by our savings or our employee benefits.
I am wondering if buying this policy is really a good move and if the cost of this product is reasonable? We can afford the cost without changing our lifestyle but our advisor is not independent so the policy would be sold by its institution and that’s what makes me wary…
